Microsoft creating a virtual world?

Apparently there was a Virtual Worlds Conference lately (which we weren't invited to, hmph) and Microsoft sent along Daniel Schiappa to represent them. For those not in the know, Dan is the General Manager of Entertainment Devices for Microsoft and his domain extends over both the Xbox 360 and the Zune.

Obviously, speculation was immediately rampant about why he was there at all and Austin360 took it upon themselves to get some answers.

Dan was originally cagey about why he was there and said that he couldn't say anything about anything until next year, but he eventually caved under pressure and talked about whether it was too late for Microsoft to try and bring a virtual world to the Xbox 360.

"Timing is definitely a concern...But I think we've got a good understanding now of the landscape, we have a strategic plan in mind ... if a year from now we don't have anything, then we probably won't have anything."

Hmm, great - that's cleared everything up nicely.

Speculation is still rife about what Microsoft could be thinking. Second Life on the Zune? A Home-alike on the Xbox 360? It's most likely going to be one of the two.

Would you buy-in to such a product or not? Let us know what you think in the forums!